- Binance conducted $90 billion worth of transactions in China where cryptocurrency trading is banned.
- These transactions account for 20% of Binance’s total trading volume.
- Binance also faces legal and regulatory challenges from U.S. authorities.
Despite facing a stringent crypto trading ban in China since 2021, Binance, one of the world’s leading crypto exchanges, reported a staggering $90 billion worth of cryptocurrency transactions in a single month. Notably, this significant amount accounts for around 20% of Binance’s total trading volume, excluding the activities of large traders, highlighting the exchange’s resilience in navigating around restricted regions.
Born in China, Binance relocated in 2017 following regulatory crackdowns on cryptocurrencies. Despite being inaccessible to China-based users due to restrictions, the country still stands as Binance’s largest market, suggesting that a significant portion of its user base found ways to circumvent the barriers.
Binance’s legal woes are not confined to China. U.S. regulators, namely the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), have also put the exchange under the microscope. The CFTC has accused Binance of operating an “illegal” exchange and a “sham” compliance program. The SEC, on the other hand, has filed a lawsuit against Binance and its CEO, Changpeng Zhao, alleging misleading investors about its market surveillance controls, the diversion of customer funds, and failure to restrict U.S. customers from its platform.
Additionally, Binance is currently under the U.S. Justice Department’s investigation concerning potential money-laundering and sanctions violations. The multiple legal and regulatory challenges thrown Binance’s way underscore the evolving complexities of the global cryptocurrency market and its regulatory environment.
Regardless of the challenges, the whopping $90 billion transactions in China underline Binance’s ability to operate in even the most stringent regulatory environments. This also raises important questions about the efficacy of such bans and their actual impact on cryptocurrency trading.